Worldwide air cargo spot rates continued to rise in the second half of October, despite a slight dip in global tonnages. The increase was driven by a +7% rise in Europe, +6% in Asia Pacific, and +5% in Central & South America.

Global spot prices reached an average of $3.80 per kilo, up 38% year on year. A +4% week-on-week (WoW) rise in global spot rates was recorded in week 42, setting the stage for the continued upward trend.

Tonnages dropped by 2% compared to the previous week, with the exception of the Middle East and South Asia, which saw a 6% drop due to national holidays. Capacity remained constrained, particularly in the Middle East, where Riyadh was nearly closed to international flights.

The capacity from Middle East and South Asia was down by -13% compared with late February (week 7), highlighting ongoing regional constraints.

Spot rates from Asia Pacific to the US rose by +7%, with Japan and South Korea seeing the largest increases. However, chargeable weight from Asia Pacific to the EU dropped by -16% YoY after the removal of the EU’s de-minimis exemption on lower-value items in July.

Asia Pacific to Europe rates also rose by +5%, with Vietnam and mainland China leading the increase.

What this means for Indian travellers: Travellers shipping goods during the peak season should expect higher air cargo rates, especially for shipments from Asia Pacific to the US and Europe. Consider planning logistics early to avoid potential delays and increased costs.